5G IPO: 9 Things to Know About the $7+ Billion IHS Towers (IHS) Offering

October 12, 2021 1:07 PM EDT

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IHS Holding Limited (NYSE: IHS), one of the largest independent owners, operators and developers of shared telecommunications infrastructure in the world, is due to launch a U.S. public offering of its stock on Thursday. The company is operating over 30,000 towers across 3 continents. Here are 9 key things to consider about the upcoming IHS Towers IPO.

1. IHS IPO Date - IHS Towers is due to go public this Thursday, October 14. IHS Towers will start trading under the ticker symbol “IHS” on the New York Stock Exchange (NYSE). Generally, shares that make their public stock market debuts start trading between 10 AM - 2 PM ET

2. IHS IPO Pricing - IHS Towers expects to price its shares between $21.00 and $24.00.

3. Shares Offered - IHS Towers is looking to sell 22,500,000 of its common stock, with the company selling 18 million shares while existing shareholders will divest 4.5 million. The S-1 filing shows the number of outstanding shares after IPO offering would be 328,053,869 shares.

4. IHS IPO Valuation - IHS Towers is seeking a valuation of between $6.89 billion and $7.87 billion.

5. IHS IPO Raised Proceeds: At the midpoint of the pricing range, IHS Towers is looking to raise $405 million. The company plans to use the raised proceeds to fund organic and inorganic growth and other general purposes.

6. IHS IPO Underwriters - Goldman Sachs, J.P. Morgan and Citigroup are acting as joint lead book-running managers for the IPO. RBC, Barclays, and Absa Bank Limited are acting as joint book-running managers for the proposed IPO. Cowen, Investec Bank, Renaissance Securities, FirstRand Bank Limited, Academy Securities, Loop, Samuel A. Ramirez & Company, Siebert Williams Shank and Tigress Financial Partners are acting as co-managers for the IPO

7. IHS Financials - IHS Towers generated sales of $764 million for the first six months of the year. Profit came in at $77 million (vs a loss of $353 million for the six months ended June 30, 2020) and Adjusted EBITDA at $490 million.

8. IHS Ownership - Three largest shareholders are Mobile Telephone Networks (Netherlands) with a 25.6% stake in the company after the IPO, Wendel (23%), and ECP (13.4%)

9. IHS Total Addressable Market (TAM): Total mobile service revenues in wireless markets were $30.9 billion as of 2020. The 4G and 5G share of total SIMs is estimated to reach 67% by 2030.

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